THIRUVANANTHAPURAM, 10 March 2007 — Efforts to improve labor skills and tap NRI investments form part of the Kerala budget proposals presented in the state assembly by Finance Minister T. M. Thomas Isaac yesterday.

The budget for 2007-08 fiscal estimates revenue receipts at Rs. 214.46 billion and revenue expenditure at Rs. 266.97 billion — a deficit of Rs. 52.51 billion. The Left Democratic Front (LDF) government pins high hopes on trade and service industries to strengthen the economy in the coming years.

Isaac said the “Pre-Departure Orientation Program,” aimed at imparting basic knowledge to the labors about the destination country, its language, labor laws and basic skills, would be launched at more centers and the Non-Resident Keralites’ Affairs (NORKA) department, which has received recruitment license, would aggressively explore job opportunities abroad.

The cash-strapped state also plans a welfare fund for the NRIs willing to deposit at least Rs. 50,000 in the government treasury. Construction of the NORKA center here would be completed this year.

Isaac said the proposed Infrastructure Kerala Limited (Inkel) would be incorporated soon with a paid-up capital of one billion rupees. The company on the lines of the Cochin International Airport Limited — with the government limiting its stake to 26 percent — would offer shares to the NRIs.

“To raise the funds for the state, we are preparing schemes through the Kerala State Financial Enterprise so that NRIs can participate in chit funds while staying abroad. We would soon open KSFE offices in the Gulf to attract deposits,” said Isaac.

Talking to reporters later, he said steps would be taken to see that a new welfare fund is set up for the Kerala NRIs with federal assistance. In the event the federal government fails to do anything, the state government would go ahead with its own plans.

The budget also proposes a deposit scheme to help special schools for the “differently-abled” students, banking on the Gulf-based philanthropists.

The interest on the treasury deposits at the rate of 15 percent would be passed on to these schools for helping the challenged students. The principal amount can be withdrawn on a year-to-year basis. The minister also offered a share of 0.5 percent of the amount collected by the community bodies in the Gulf who would help mobilize deposits in this account. He made a budgetary allocation of Rs. 50 million for the scheme.

The budget depends heavily on the federal programs on urban development, poverty alleviation and health care insurance while making token allocations.

It stresses on the need for strengthening the fast growing sectors like information technology, tourism, light engineering and food processing.

Investment Opportunities for NRKs

Kerala Governor R.L. Bhatia said his government would take steps to provide more investment opportunities to non-resident Keralites (NRKs), adding the new projects would benefit both the state and the investors.

Speaking at the opening of the 4th session of the 12th Assembly, Bhatia said the Non-Resident Keralites Affairs (NORKA) department had taken up various issues concerning the welfare of the expatriates with the government of India.

“The department has also launched pre-departure orientation programs for job aspirants of the state to make them aware of the general job situation abroad and to provide other essential information to guide them,” he added.

The governor also unveiled the Left Democratic Front (LDF) government’s 12 “flagship” schemes aimed at alleviating poverty and creating jobs. The schemes cover agriculture, health, education, housing, gender awareness, employment, social security and administrative reforms.

The 19.6-billion-rupee schemes targets universal health security, free midday meal for secondary and higher secondary school students, more scholarships and fellowships for university students, free housing for the poor and stabilization of cash-crop economy.

“Wayanad district will be made a major center of milk production and milk products by establishing a joint venture project with NRI participation,” he said.

Kerala Tops in Quality Education

Kerala has topped the list of states providing better primary and upper primary education according to the federal government’s Educational Development Index (EDI). Delhi and Tamil Nadu follow Kerala closely. Bihar, Uttar Pradesh, West Bengal, Madhya Pradesh and Rajasthan have not made significant progress though 51 percent of the total outlays under the Sarva Shiksha Abhiyan or universal education program had been allocated in 2006-07 to these states. Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Manipur, Meghalaya, Rajasthan, Sikkim and Tripura have higher dropout rates when compared to the all India average of 31.47 percent.

11 Economic Zones Approved

Eleven Special Economic Zones (SEZs) that envisage 100-percent tax-free investment and repatriation of capital has been approved, Chief Minister V.S. Achuthanandan told the state assembly.

The SEZs are being promoted by public sector facilitators including Kerala Infrastructure Development Corporation (Kinfra), Technopark and Cochin Port Trust. The state would provide basic requirements like electricity and water. Though all the labor laws under Industrial Disputes Act would be applicable in the SEZs, development commissioner in each SEZ will ensure their enforcement.